News Detail

Date/Time
30 Nov 2021 18:13:00
Headline
Progress reports quideline of corrective action in case "C" mark of AQ
Symbol
AQ
Source
AQ
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                 -Translation-
 
SET. 037/2021
   
30 November 2021
 

Subject:     Progress reports guideline of corrective action in case of "C" mark of
      AQ Estate Public Company Limited

To:        Directors and the Manager
              The Stock Exchange of Thailand
 
 With reference to AQ Estate Public Company Limited has organized a meeting to 
provide information to investors and related persons (Public Presentation) in
the securities of the company which were up to the mark "C" since the Company
has shareholders' equity less than 50% of the paid-up capital for the financial
statements in Q3/2021 ended 30 September 2021, the  meeting is held on 30
November 2021 at 10:00 a.m. in the building AQ Estate Plc. No. 102 Rim Klong
Bangkapi Road, Bangkapi Subdistrict, Huai Khwang District, Bangkok. The
Company's reported results of the meeting are as follows.

The cause of company lost a lot due to the provision for liabilities from the 
judgment of the Supreme Court's Criminal Division for Holders of Political
Positions to compensate for Krung Thai Bank totaling 3,057.64 million baht. In
the Supreme Court's Criminal Division for Persons Holding Political Positions
ordered the joint company responsible for compensation of 10,004.47 million
baht.  The company paid amount of 1,635.74 million baht.  Debt Obligations
remain outstanding to pay for the amount of 8,368.73 million baht.

Solution: The auction of collateral land amounted to 4,300 rai. The Board of 
Director set the selling price of land auction at 8,914.07 million baht, which
is higher than the company payment amount. On 17 October 2018 was the first time
in sale by auction. The bidder of land auction was secured for 8,914.07 million
baht which the bidder deposit by the regulations of the Legal Execution Office
of 448.50 million baht. Bidders are allowed to extend the payment period to 1
February 2019 for the remainder. On 24 January 2019, the auctioneer made a
payment of 3,819 million baht for the auction assets group 1. The auction assets
group 1 and 2 are owned by Golden Company and group 3 is owned by K&V SRS
Garden Home Company which the Golden Company holds 99.97% of shares and the land
came to be secured for Golden Company. K&V SRS Garden Home has filed a petition
to revoke the sale of assets by claiming that it is unlawful for all 4 such
cases. The court dismissed the petition and the petitioner filed an appeal one
case and the court will not accept the appeal and the case shall be terminated.

At present, the auctioneer bought such land and paid all land successfully. As 
for the amount of 1,196.02 million baht, the auctioneer placed the money to the
Legal Execution Division. On 15 September 2020, Krung Thai Bank received the
remaining land payment and has used a civil court judgment to request payment of
all debts and Krung Thai Bank has recorded the whole amount as interest income.
Hence, the company filed a lawsuit against Krungthai Bank and Krungthai Bank's
management due to breach of the agreement. In the event that AQ Company wins the
lawsuit in this case, the reserve liabilities are set to be transferred to
deficit, resulting in the remaining loss of 4,275 million baht. As a result, the
shareholders' equity amounted to 5,733.38 million baht which compared with the
registered and paid-up capital, less discount on net share capital of 9,902.86
million baht. The ratio was 57.90%, exceeding the 50% threshold. Therefore, the
Company is able to successfully resolve the C mark.

On 25 September 2019, AQ Estate Plc. (Plaintiff) filed a lawsuit against 
Krungthai Bank Plc. (Defendant) in a civil case requesting Krungthai Bank to
change its financial statements for the first quarter of 2019 in which the
proceeds received from the auction of the secured land in the amount of 3,898.70
million baht to be recorded as damages in the case of the Supreme Court's
Criminal Division for Persons Holding Political Positions. The Court has
scheduled the date for litigation or prosecution witnesses on 18 November 2019.
All defendants request permission to extend their testimony until 24 February
2020 and on 24 February 2020, 13 defendants have applied for an extension of
time to file their testimony further 30 days. The court has allowed the
postponement to make appointment for settlement of issues on 27 April 2020 and
with the situation of outbreak of the Coronavirus 2019 (COVID-19), the court
canceled the appointment and a new appointment for settlement of issues on 30
September 2020 and on 30 September 2020, Thirteen defense attorneys ask the
plaintiff's attorney to withdraw the lawsuit against the 2nd to 13th defendants
as the director of the 1st defendant acting on behalf of the 1st defendant. The
plaintiff's attorney accepts the matter to propose the plaintiff's management by
making appointment for settlement of issues or a legal decision on 19 November
2020. On this day, the defense attorney requested to postpone in diagnosis
because Krungthai Bank has been diagnosed by Office of the Council of State that
was not being a state enterprise. Therefore, the problem is that the prosecutor
officer could defend as the defendant for all 13 defendants or not and
Plaintiffs are discussing ways to compromise the debt to the defendant,
therefore does not oppose the postponement of appointment for settlement of
issues on 22 February 2021, on the day The court to postpone the settlement of
issues on 14 June 2021.  The present The court to postpone the settlement of
issues on 13 September 2021, on this day The court to postpone the settlement of
issues on 27 October 2021, today the court to determine of the plaintiff
witness hearing on March 22-23 ,2022 and the defendant witness hearing on March
24,29-31,2022.    

The Committee agreed to await the outcome of the civil case above. If there is 
any progress in such case, the Company will continue to report the progress to
shareholders and investors through the SET system.

Please be informed accordingly.
     

Yours Sincerely,


(Mr. Chamnarn Wangtal)    (Mr. Michael A. W. Fernandez)
Director                        Director
______________________________________________________________________
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